Ikena Oncology Reports $8.6 Million Net Loss in Q1 2025, Plans Merger with Inmagene Biopharmaceuticals

Ikena Oncology, Inc. reported a net loss of $8.6 million for the first quarter of 2025, a significant reduction from the $16.1 million loss recorded in the same period of 2024. The company’s total operating expenses decreased by 41% to $10.8 million, down from $18.2 million year-over-year. This decline was primarily driven by a 61% reduction in research and development expenses, which fell from $9.6 million to $3.7 million, reflecting the company's strategic decision to prioritize its clinical stage program, IK-595, while discontinuing other projects.

The company’s financial position showed a decrease in total assets, which amounted to $130.8 million as of March 31, 2025, down from $141.5 million at the end of 2024. Cash and cash equivalents decreased to $36.8 million from $39.4 million, while marketable securities also saw a decline from $85.0 million to $77.3 million. Ikena's accumulated deficit increased to $340.2 million, highlighting the ongoing challenges in achieving profitability, as the company has yet to generate revenue from product sales.

Strategically, Ikena is in the process of merging with Inmagene Biopharmaceuticals, a move that was unanimously approved by its board of directors. The merger is expected to close in mid-2025, subject to stockholder approvals and other customary conditions. Concurrently, Ikena has entered into a Loan and Security Agreement with Inmagene, providing up to $22.5 million in funding, which includes an initial loan of $7.5 million already disbursed. This merger is seen as a critical step for Ikena, as it aims to enhance its product pipeline and market presence.

Operationally, the company has undergone significant restructuring, including workforce reductions and the discontinuation of certain development programs. As of March 31, 2025, Ikena had 48.3 million shares outstanding, with no new stock options granted during the quarter. The company’s focus remains on advancing its lead product candidate, IK-595, which is designed to target RAS pathways in oncology. Ikena's management has indicated that the success of the merger and the development of its product candidates will be pivotal for future growth and financial stability.

Looking ahead, Ikena anticipates continued operating losses as it navigates the complexities of the merger and the development of its product candidates. The company has emphasized the need for additional funding to support its operations and strategic initiatives, which may include equity offerings or collaborations. The management remains cautious, acknowledging that the successful completion of the merger and the commercialization of its product candidates are critical to achieving long-term viability and shareholder value.